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Oil and gas exploration and development company Lekoil has announced the completion of a new debt facility raising US$20mn

Lekoil has refinanced its existing US$10mn Notes Issuance Agreement (NIA) with FBN Capital Limited (FBN) and has secured a new NGN2bn (US$10mn) facility from FBN.

The US$10mn facility has a maturity of three years and is repayable quarterly after a six-month moratorium with a margin of 11.25 per cent over LIBOR.

Its existing NIA bridge facility, of which US$5mn was due in May 2016, has been extended to August 2016 and subsequently refinanced into the new USD facility.

The notes have an interest rate referencing the higher of the 30-day average of 90 day NIBOR + six per cent or 20 per cent.

Following the successful drill stem tests at Otakikpo which produced oil flows in excess of company expectations, the company has reconfirmed that it is on track to complete Otakikpo within the original US$82mn capital expenditure budget that was estimated in 2014.

Lekoil said it was 'pleased' to secure funding from a 'key' local lender with no pre-payment penalty. The company has the flexibility to pay a portion of its costs in Naira and expects to draw down on the Naira facility as needed.